Self-employed retirement plans Columbus, GA. The freedom of owning your own business in Columbus, GA is one of the best aspects of being self-employed. However, this flexibility sometimes brings with a lack of security, especially in terms of planning for retirement, because you don't have the benefit of a workplace retirement plan. Only 13% of self-employed individuals have a workplace retirement plan, yet countless could benefit from exploring their options. In addition to having a more comfortable retirement, seeking advice from a financial advisor in Columbus, GA to establish your self-employed retirement plan delivers significant tax advantages that enable both you and your business to thrive.
Few Columbus, GA investment consulting and retirement planning firms understand the needs of self-employed individuals as well as Correct Capital. Our founder's father was a small business owner himself (learn more about our story here), and Correct Capital are deeply experienced in supporting entrepreneurs with their retirement planning needs. We recognize that your goals for your business and retirement aren’t limited to simple financial figures, and we strive to create tailored solutions aligned with your vision. Continue exploring to find out about your self-employed retirement plan options in Columbus, GA, or call Correct Capital at 877-930-401k or contact us online to consult with a small business financial advisor in Columbus, GA today.
Why Columbus, GA Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals help prepare you for the future, they also offer immediate benefits today. With customizable contribution options to significant tax savings, consulting a financial advisor in Columbus, GA helps you create your retirement plan to align with your individual circumstances.
Flexibility That Fits Your Income
For those with fluctuating income over time, a plan like a SEP IRA or Solo 401(k) gives you the freedom to adjust how much you save:
- Customizable Contributions: Set aside more during profitable years and cut back when income is lower, ensuring your plan aligns with your cash flow.
- Roth Options: A Roth Solo 401(k) lets you pay taxes on contributions now, allowing you to withdraw tax-free later—a wise move if you anticipate your tax rate will increase in the future.
Save Money on Taxes
Self-employed retirement plans offer valuable tax benefits:
- Tax-Deductible Contributions: Contributions to a Solo 401(k) lower your taxable income, helping you keep more of your income.
- Tax-Deferred Growth: Your savings grow untaxed until withdrawn, giving your money more time to accumulate.
- State-Specific Incentives: Depending on where you live, you may be eligible for extra tax breaks as a self-employed individual. These local incentives help make these plans even more advantageous.
- Retirement Savings Contributions Credit (Saver’s Credit): Qualified participants can claim a tax credit of up to 50% of the first $2,000 they contribute a retirement plan, cutting down your tax bill even more.
Protect Your Savings With Smart Investments
Planning for a safe retirement goes beyond just how much you save—it’s also about how you invest:
- Diversified Portfolios: Spreading your investments across a mix of stocks, bonds, and alternatives is a smart way to mitigate financial risk while continuing to build your nest egg.
- Emergency Back-Up: Supplementing your retirement savings with a financial buffer for your business helps you avoid tapping into your nest egg during financial hardships and incurring penalties.
Plan for the Future of Your Columbus, GA Business
A thoughtful retirement strategy also helps you prepare for what’s next with your Columbus, GA business:
- Selling Your Business: For those considering a sale, accounts such as SEP IRAs or Solo 401(k)s stay in your name and don’t transfer with the business. These accounts ensure the financial stability you’ll need during retirement. Remember that while the sale of a business usually creates a capital gain, deposits into these plans are subject to yearly maximums (e.g., a maximum of $7,000 for IRAs or as much as $70,000 for Solo 401(k)s, including catch-up contributions, according to plan rules).
- Minimizing Taxes: Strategically planning your contributions can reduce the taxes you’ll owe when you sell your business.
- Succession Planning: If you’re passing the business on, your nest egg ensure a stable foundation as you make this shift. You may also work with a financial advisor experienced in both succession and retirement strategies to minimize tax burdens on the sale.
With the best-fit retirement strategy, you can take control of your financial future, lower your tax bill, and establish a solid base for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Columbus, GA Now?
Time remains one of the most valuable factors in retirement planning. Starting early not only helps you grow a bigger financial cushion but also lowers the pressure of playing catch-up as you get older. The following are reasons why it pays to take action now:
The Cost of Waiting
Waiting to start your retirement fund could lead to a substantial impact on the total you’ll have when you stop working. The primary reason is compound interest—the financial principle where your investments grow, and those returns, subsequently, generate even more returns. The greater time span your money has to grow, the greater the impact of compounding.
Example: Two individuals, Alex and Taylor are both entrepreneurs. They each aim to save $500,000 for retirement by age 65:
- Alex starts saving $5,000 annually at age 30.
- Taylor waits until age 40 but saves $7,500 annually to catch up.
By age 65, using a projected 7% annual return:
- Alex invests $180,000 and ends up with $691,184.39*.
- Taylor puts in $195,500 but achieves a total of only $474,367.78*.
How Early Contributions Grow
Even modest contributions made consistently may result in significant growth. Consider this example showing the power of compound interest:
- Starting at age 25: If you invest $200 per month in a retirement plan with an average annual return of 7%, you’ll grow to approximately $497,303.29* by age 65.
- Starting at age 35: Saving the same $200 per month leaves you with only $235,412.97* by age 65—a gap of over $260,000, all because of a 10-year delay.
Starting sooner, the lower your annual savings needs each year to meet your retirement goals.
*The figures provided in this example are estimates derived from NerdWallet’s Compound Interest Calculator, based on a 7% annual return. These calculations involved multiplying yearly deposits by the years contributed. These examples are intended as illustrative examples and do not guarantee future performance. Actual results may vary based on factors such as market conditions, fees, and your unique situation. Always consult a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
If you’re self-employed in Columbus, GA, it might seem easier to prioritize reinvesting in your business instead of saving for retirement. Even so, beginning a plan now allows you to:
- Take advantage of tax-deferred growth or tax-free withdrawals down the road.
- Enjoy contribution flexibility that change with your earnings.
- Build a safety net that ensures stability, no matter how your business evolves.
Getting started now, the less you’ll need to worry about making up for lost time later in life. Taking steps toward your retirement goals today means gaining control over your financial future and giving yourself the opportunity to focus on your dreams—both for your retirement years and your Columbus, GA business.
Types of Self-Employed Retirement Plans
Multiple retirement savings options designed for entrepreneurs in Columbus, GA, each providing its own benefits and trade-offs. A financial advisor is available to help you understand the advantages and disadvantages of each choice and identify the one best suited for your unique situation. In most cases, your self-employed retirement plan options in Columbus, GA consist of:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent retirement savings vehicles that include distinct tax benefits. In a standard IRA, you can usually deduct your contributions from taxable income, and returns grow free of current taxes, but money taken out during retirement are taxable. In contrast, with Roth IRAs, you contribute using income already taxed, but retirement withdrawals that qualify, including earnings, are exempt from taxes. In both types of accounts, withdrawals come without penalties provided you are at least 59½.
Eligibility: Unlike 401(k)s, which are employer-sponsored, both traditional and Roth IRAs are open to those with a source of income.
Contribution Limits: For 2025, annual contribution limits for IRAs are set at $7,000, or $8,000 for those aged 50+.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: SEP IRAs is a retirement plan that allows entrepreneurs to contribute a percentage of their net earnings. Contributions must come from an employer, so, as a self-employed individual, you (the employee) would not be able to contribute more than the 25% you (the employer) have designated. If you have employees, you are obligated to contribute the same amount for them as you do for yourself. You may choose to contribute a fixed dollar figure or a percentage of wages to employee accounts. A SEP IRA is a good option for businesses that experience periods of inconsistent earnings. In contrast to some alternatives, SEP IRAs lack expensive setup or ongoing fees.
SEPs work like traditional IRAs, where the contributions are tax-deferred and withdrawals are taxed as income.
Eligibility: Any employer, including the self-employed can open a SEP.
Contribution Limits: Contribution limits for employees in a SEP IRA are the lesser of:
- 25% of compensation, or
- $70,000 for 2025
For self-employed individuals, the allowable contribution is based on a special calculation.
Solo 401(k)
Plan Overview: A Solo 401(k) plan, commonly known as an Individual 401(k) or one-participant 401(k) plan, is a retirement savings plan meant for businesses with no employees or where the only employee is a spouse. This type of plan are similar to traditional employer-managed 401(k) plans, and allow you to contribute as both an employee or an employer with pre-tax money. This provides more savings than SEPs or IRAs; however, the additional opportunities often come with more restricted investment choices. In a solo 401(k) plan, you can make either traditional or Roth deferrals, which share the same tax benefits as their IRA contribution counterparts.
Eligibility: This plan is exclusively for business owners and their spouses may establish and contribute to a solo 401(k).
Contribution Limits: As a self-employed individual with a solo 401(k) plan, you have the ability to make two types of contributions:
- Employee contributions of up to 100% of your self-employed earnings, subject to the annual contribution limit. In 2025, those limits are $23,500, or $31,000 if you're over 50, or $34,750 for individuals aged 60-63 in 2025.
- Contributions as an employer (as an employer) must not surpass 25% of your net earnings from self-employment, which is calculated as net profits less half of your self-employment tax and the elective deferrals you made.
Total contributions are capped at $70,000, or $77,500 for individuals aged 50+ (in 2025), $81,250 for those aged 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: The defined benefit plan is a retirement option that guarantees a set amount to business owners upon retirement. As opposed to defined contribution plans, this plan is not influenced by market performance, but lets individuals clearly understand the precise amount they'll get in retirement. This plan is recommended for higher-income self-employed individuals who aim to accumulate a substantial amount for retirement and are prepared to contribute larger deposits. Contributions grow tax-free until withdrawal, and withdrawals are taxable as income in retirement.
Eligibility: Entrepreneurs operating a solo business or with less than five employees can open an individual defined benefit plan, but it's most commonly suggested for those over 50 who earn at least $250,000 a year. Generally, good candidates for defined benefit plans tend to be:
- Business owners or partners who aim to deposit more than $70,000 (or $77,500 for those aged 50+)
- Organizations that already put in 3-4% with plans to contribute more
- Businesses with proven consistent profit patterns
- Business leaders over age 40 who aim to quickly build retirement savings or boost savings within a short timeframe
Contribution Limits: The cap on contributions requires calculation from an actuary based on your income, age, and retirement goals. Allowable contributions are adjusted each year.
The Importance of a Financial Advisor in Columbus, GA for Your Self-Employed Retirement Plan
Working with a financial advisor in Columbus, GA focused on self-employed retirement strategies is an invaluable resource for self-employed individuals. They bring the skills needed to understand the intricacies of saving for retirement and design a customized plan that reflects your aspirations. Your advisor in Columbus, GA will assess where you stand financially, identify your risk preferences, and help you in selecting the best options about saving and investing for retirement. A key part of what we do for you involves:
- Guide you in choosing a plan that best fits your needs and goals
- Further adapt the plan to fit you personally even further
- Formalize a plan in writing in accordance with IRS guidelines
- Organize a trust plan to manage your assets
- Ensure you comprehend the plan's terms
- Track and fine-tune your plan to keep it aligned with your goals
- Deliver continuous support and financial insights to help you navigate your retirement journey
- Maximize what you receive in retirement by maximizing your social security benefits
Self-Employed Retirement Plans in Columbus, GA: Correct Capital's Process
Columbus, GA business owners who don’t have the time or expertise to oversee their self-employed retirement plan on their own may end up overwhelmed by their available plans. Through our team at Correct Capital, our Columbus, GA financial advisors manage the lion's share of your retirement strategy for you, and strive to ensure meeting your retirement goals as straightforward as possible for you. We are here to assist you in setting up your self-employed retirement plan in four simple steps:
- Schedule a Call: It only takes 20 minutes, a member of our advisor team can help understand if we're suited to your needs for you and your business. This brief introduction lets us get a sense of your goals with no obligation or major time investment on your part.
- Gather Information: Should we agree to proceed, we'll gather information, including whether you have employees, your existing financial picture, and your long-term savings targets. This allows us to put together a personalized strategy designed just for you.
- Review Your Plan: After we put together a plan using the information you provide, we'll schedule a meeting and discuss your plan step by step to make sure it's clear and explain its fit to your circumstances.
- Implementation and Monitoring: After we agree on your plan, we'll set everything up so you can start saving. As time goes on, we'll check in and monitor your plan to make sure it remains aligned with your goals.
Our Columbus, GA financial advisors and retirement plan consultants are fiduciary advisors, meaning they are legally and ethically bound to prioritize your needs above all else.
Other financial advisory services we offer in Columbus, GA include:
- Retirement Income Planning
- Investment Planning
- Retirement Financial Planning
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
Call Correct Capital for Your Self-Employed Retirement Plan in Columbus, GA
To you, your business is more than "just a business", and your Columbus, GA financial advisors must deliver more than just good financial guidance. Correct Capital takes pride in, we focus on building a relationship with our clients and their businesses to deliver tailored self-employed retirement plans. We offer all our Columbus, GA clients our I.O.U. promise: all of the advice you get from us will be independent, objective, and unbiased. To take the first step on your self-employment retirement plan, reach out to Correct Capital at 877-930-401k or contact us online.
